Question
1. John and Patrice Martin would like to purchase a home. To help finance the purchase, they will borrow $250,000 from Wells Fargo. the bank
1. John and Patrice Martin would like to purchase a home. To help finance the purchase, they will borrow $250,000 from Wells Fargo. the bank will charge 6 percent annual interest, compounded monthly (0.005 per month). The mortgage will be repaid through monthly payments over 15 years (180 payments). What is John and Patrice's monthly mortgage payment?
2. Alex was injured in an accident caused by an Overnight Freight delivery driver. To settle the claim from Alex's injuries, Overnight Freight agreed to pay Alex six annual payments of $35,000 with the first of these payments five years from today. assuming a 4 percent annual interest rate, what is the present value of Alex's settlement?
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